Wacky Wodge

A new wheeze has emerged in California of entrepreneurs getting their money out before the IPO by taking a cut of the VC money.

Another of these ‘social networking’ sites called Secret raised $30 million of which $6 million was split between the two founders.

The same thing happened at Snapchat where the founders took $10 million each after a funding round.

Apparently it’s being increasingly done and the reason it’s being done is to motivate the entrepreneurs who need encouragement.

Wacky but it’s California.

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1 Comment

  1. Silverman
    July 30, 2014 16:25

    That is a worrying indicator of how worthless paper money has become.

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